Common use of Realization of Mortgage Clause in Contracts

Realization of Mortgage. 8.1 Party A has the right to realize the mortgages under any of the following circumstances: A. The Debtor fails to discharge its obligations when Party A's Principal Claims become due (including becoming due earlier); B. Party B fails to recover values of the Collaterals or provide other collaterals whose values equal to reduced values in the event of occurrence of circumstances as specified in Article 3.9 hereof; C. Party B or the Debtor is petitioned for bankruptcy or out-of-business, dissolution, liquidation, or suspended for reorganization, or its business license is cancelled or withdrawn; D. Party B disposes the Collaterals under the floating mortgages by going beyond the arm's length transaction in its production and operation; E. Other circumstances as provided by the laws and regulations, according to which Party A may realize the mortgages. 8.2 When realizing the mortgages, Party A may be indemnified with priority from the proceeds arising out of auction of the Collaterals, or offset obligations owed by the Debtor by appraised prices of the Collaterals, based on its negotiation with Party B. If the parties fail to agree on realization of mortgages, Party A may directly apply to the People's Court for disposing the Collaterals by auction or sales. 8.3 If currency of the proceeds from disposal of the Collaterals is different from such currency as set forth in the Principal Contracts, it is required to satisfy Party A's claims after such proceeds are converted into the money in currency of the Principal Contracts at applicable exchange rate published by Party A.